1998 Legislation
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SENATE BILL NO. 1483 – MV, no liability insurance, penalty

SENATE BILL NO. 1483

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S1483................................................by JUDICIARY AND RULES
MOTOR VEHICLES - INSURANCE - Amends existing law to provide that a person
convicted of failure to have motor vehicle liability insurance for the
first time shall be required to maintain proof of financial responsibility
for one year following conviction and for three years for a second and any
subsequent conviction within five years and to require notification of the
person of the requirements for maintaining proof of financial
responsibility upon a second and subsequent conviction; to provide an
infraction penalty for a first conviction and misdemeanor penalties for a
second and any subsequent conviction within five years for failure to
maintain motor vehicle insurance, failure to carry proof of insurance or
driving a motor vehicle without insurance; and to require the Idaho
Transportation Department to provide notice to the convicted person of
subsequent penalties.

02/16    Senate intro - 1st rdg - to printing
02/17    Rpt prt - to Jud
02/24    Rpt out - rec d/p - to 2nd rdg
02/25    2nd rdg - to 3rd rdg
02/27    3rd rdg - PASSED - 33-1-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, Noh, Parry, Richardson,
      Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett, Sweeney, Thorne,
      Twiggs, Wheeler
      NAYS--Whitworth
      Absent and excused--McLaughlin
    Floor Sponsors - Geddes, Sorrensen
    Title apvd - to House
03/02    House intro - 1st rdg - to Jud
03/20    Rpt out - rec d/p - to 2nd rdg
03/20    Rls susp - PASSED - 66-1-3
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
      Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
      Clark, Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
      Field(20), Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck,
      Jaquet, Jones(9), Jones(22), Jones(20), Judd, Kellogg, Kempton,
      Kendell, Kjellander, Kunz, Lake, Linford, Loertscher, Mader, Marley,
      McKague, Meyer, Miller, Mortensen, Newcomb, Pischner, Pomeroy,
      Reynolds, Richman, Ridinger, Robison, Schaefer, Stevenson, Stone,
      Stubbs, Tilman, Tippets, Trail, Watson, Wheeler, Zimmermann,
      Mr Speaker
      NAYS -- Stoicheff
      Absent and excused -- Sali, Taylor, Wood
    Floor Sponsor - Jones(9)
    Title apvd - to Senate
03/23    To enrol - rpt enrol - Pres signed
    Sp signed - to Governor
03/30    Governor signed
         Session Law Chapter 423
         Effective: 01/01/99

Bill Text


S1483


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1483

                             BY JUDICIARY AND RULES COMMITTEE

 1                                        AN ACT
 2    RELATING TO MOTOR VEHICLE INSURANCE; AMENDING SECTION 49-1208, IDAHO CODE,  TO
 3        PROVIDE  THAT  ANY  PERSON  CONVICTED  OF A VIOLATION OF SECTIONS 49-1229,
 4        49-1232 OR 49-1428, IDAHO CODE, FOR THE FIRST TIME SHALL  BE  REQUIRED  TO
 5        MAINTAIN PROOF OF FINANCIAL RESPONSIBILITY FOR ONE YEAR FOLLOWING THE CON-
 6        VICTION  AND  FOR  THREE  YEARS FOR A SECOND AND ANY SUBSEQUENT CONVICTION
 7        WITHIN FIVE YEARS AND TO REQUIRE THAT THE DEPARTMENT NOTIFY THE PERSON  OF
 8        THE  REQUIREMENTS FOR MAINTAINING PROOF OF FINANCIAL RESPONSIBILITY UPON A
 9        SECOND AND SUBSEQUENT CONVICTION; AMENDING SECTION 49-1220, IDAHO CODE, TO
10        PROVIDE FOR CANCELLATION OR RETURN OF PROOF  OF  FINANCIAL  RESPONSIBILITY
11        WITH  RESPECT TO A PERSON SUBJECT TO THE ONE-YEAR REQUIREMENT, TO PROHIBIT
12        ISSUANCE OF A DRIVER'S  LICENSE  TO  A  PERSON  SUBJECT  TO  THE  ONE-YEAR
13        REQUIREMENT  WHOSE  PROOF  HAS  BEEN CANCELLED OR RETURNED UNLESS PROOF IS
14        REESTABLISHED FOR THE REMAINDER OF THE PERIOD AND TO MAKE A TECHNICAL COR-
15        RECTION; AMENDING SECTION 49-1229, IDAHO CODE, TO PROVIDE AN EXCEPTION  TO
16        THE  REQUIREMENT  FOR CONTINUOUS INSURANCE COVERAGE, TO PROVIDE AN INFRAC-
17        TION PENALTY FOR A FIRST CONVICTION AND MISDEMEANOR PENALTIES FOR A SECOND
18        AND ANY SUBSEQUENT CONVICTION WITHIN FIVE YEARS OF A  FAILURE  TO  PROVIDE
19        CONTINUOUS  MOTOR VEHICLE LIABILITY INSURANCE, TO REQUIRE NOTICE OF PENAL-
20        TIES BY THE DEPARTMENT AND TO MAKE A TECHNICAL CORRECTION;  AMENDING  SEC-
21        TION  49-1232,  IDAHO  CODE,  TO PROVIDE AN INFRACTION PENALTY FOR A FIRST
22        CONVICTION AND MISDEMEANOR PENALTIES FOR A SECOND AND ANY SUBSEQUENT  CON-
23        VICTION  WITHIN  FIVE  YEARS OF A FAILURE TO CARRY PROOF OF INSURANCE IN A
24        MOTOR VEHICLE AND TO REQUIRE NOTICE OF PENALTIES BY THE DEPARTMENT; AMEND-
25        ING SECTION 49-1428, IDAHO CODE, TO PROVIDE AN INFRACTION  PENALTY  FOR  A
26        FIRST CONVICTION AND MISDEMEANOR PENALTIES FOR A SECOND AND ANY SUBSEQUENT
27        CONVICTION  WITHIN  FIVE YEARS OF OPERATING A MOTOR VEHICLE WITHOUT INSUR-
28        ANCE, TO REQUIRE NOTICE OF PENALTIES BY THE DEPARTMENT AND TO MAKE A TECH-
29        NICAL CORRECTION; AND PROVIDING AN EFFECTIVE DATE.

30    Be It Enacted by the Legislature of the State of Idaho:

31        SECTION 1.  That Section 49-1208, Idaho Code, be, and the same  is  hereby
32    amended to read as follows:

33        49-1208.  PROOF  REQUIRED UPON CERTAIN CONVICTIONS. (1) If a person is not
34    licensed, but by final order or judgment is convicted of or forfeits any  bail
35    or  collateral  deposited  to  secure an appearance for trial or has entered a
36    plea of guilty for any offense requiring the suspension or revocation  of  the
37    driver's  license,  or for operating a motor vehicle upon the highways without
38    being licensed to do so, no driver's license shall be issued  to  that  person
39    until he gives and maintains proof of financial responsibility.
40        (2)  Whenever  the  department  or  a  court  suspends,  or the department
41    revokes a resident's driver's license or nonresident's  driving  privilege  by
42    reason  of  a  conviction,  forfeiture  of  bail, or upon a plea or finding of
43    guilty, the license or privilege shall remain suspended or revoked unless  the


                                          2

 1    person  shall  have  previously  given  or shall immediately give and maintain
 2    proof of financial responsibility.
 3        (3)  Any person who is convicted of violating  the  provisions  of  either
 4    section  49-1229,  49-1232  or  49-1428,  Idaho Code,  for the first time
 5    shall give and maintain proof of financial responsibility throughout  the  one
 6    (1)  year period following the conviction, and for a second conviction and any
 7    subsequent conviction within five (5) years,  shall  give  and  maintain
 8    proof of financial responsibility throughout the three (3) year period follow-
 9    ing  such  conviction.  The department shall notify any person subject to
10    this subsection of the requirements for maintaining proof of financial respon-
11    sibility for a second and any subsequent conviction. 
12        (4)  Whenever a person is required to maintain proof of financial  respon-
13    sibility,  and  who  is  not a resident of Idaho, files and maintains proof of
14    financial responsibility in his home state the department shall reinstate  the
15    person's  driving  privileges  as long as proof of financial responsibility is
16    maintained in the person's home state.

17        SECTION 2.  That Section 49-1220, Idaho Code, be, and the same  is  hereby
18    amended to read as follows:

19        49-1220.  DURATION  OF  PROOF  -- WHEN PROOF MAY BE CANCELLED OR RETURNED.
20    (1) The department shall upon request consent to the immediate cancellation of
21    any bond or certificate of insurance, or the department shall direct  and  the
22    state treasurer shall return to the person entitled thereto any money or secu-
23    rities  deposited  pursuant to this chapter, or the department shall waive the
24    requirement of filing proof, in any of the following events:
25        (a)  At any time after  one (1) year or  three (3)  years  from
26        the  date  the  proof  was required , as provided in section 49-1208,
27        Idaho Code,  when, during the  one (1) year or  three (3)
28        year period preceding the request, the department has not received  record
29        of  a conviction or a forfeiture of bail which would require or permit the
30        suspension or revocation of the driver's license or nonresident's  operat-
31        ing privilege of the person by or for whom the proof was furnished; or
32        (b)  In the event of the death of the person on whose behalf the proof was
33        filed  or  the permanent incapacity of the person to operate a motor vehi-
34        cle; or
35        (c)  In the event the person who has given proof surrenders  his  driver's
36        license to the department.
37        (2)  The  department  shall not consent to the cancellation of any bond or
38    the return of any money or securities in the event any action for damages upon
39    a liability covered by the proof is then pending, or  any  judgment  upon  any
40    liability  is  then  unsatisfied, or in the event the person who has filed the
41    bond or deposited the money or securities has, within one (1) year immediately
42    preceding the request, been involved as an operator  or  owner  in  any  motor
43    vehicle  accident  resulting  in injury or damage to the person or property of
44    others. An affidavit of the applicant as to the nonexistence of the facts,  or
45    that he has been released from all of his liability, or has been finally adju-
46    dicated  not  to  be liable for the injury or damage, shall be sufficient evi-
47    dence in the absence of evidence to the contrary in the records of the depart-
48    ment.
49        (3)  Whenever any person whose proof has been  canceled   
50    cancelled    or returned applies for a driver's license  within a period
51    of  one (1) year or within a period of  three (3)  years  from  the
52    date  proof  was  originally  required  , as provided in section 49-1208,
53    Idaho Code , the application shall be refused unless the applicant shall


                                          3

 1    reestablish proof for the remainder of the  one (1) year or   three
 2    (3) year period.

 3        SECTION  3.  That  Section 49-1229, Idaho Code, be, and the same is hereby
 4    amended to read as follows:

 5        49-1229.  REQUIRED MOTOR VEHICLE INSURANCE. (1) Every  owner  of  a  motor
 6    vehicle  which  is  registered  and operated in Idaho by the owner or with his
 7    permission shall continuously , except as provided  in  section  41-2516,
 8    Idaho  Code,     provide insurance against loss resulting from liability
 9    imposed by law for bodily injury or death or damage to  property  suffered  by
10    any person caused by maintenance or use of motor vehicles described therein in
11    a  n    amount not less than that required by section 49-117, Idaho
12    Code, and shall demonstrate the existence of any other  coverage  required  by
13    this  title or a certificate of self-insurance issued by the department pursu-
14    ant to section 49-1224, Idaho Code, for each motor vehicle to be registered.
15        (2)  A motor vehicle owner who prefers to post an indemnity bond with  the
16    director  of the department of insurance in lieu of obtaining a policy of lia-
17    bility insurance may do so. Such bond shall guarantee that any loss  resulting
18    from  liability  imposed by law for bodily injury, death or damage to property
19    suffered by any person caused by accident and arising out  of  the  operation,
20    maintenance and use of the motor vehicle sought to be registered shall be paid
21    within  thirty  (30)  days.  The indemnity bonds shall guarantee payment in an
22    amount no less than fifty thousand dollars ($50,000) for any one (1)  accident
23    of  which  fifteen thousand dollars ($15,000) is for property damage, for each
24    vehicle registered up to a maximum of  one  hundred  twenty  thousand  dollars
25    ($120,000) for five (5) or more vehicles.
26        (3)  Any bond given in connection with this chapter shall be, and shall be
27    construed  to be, a continuing instrument and shall cover the period for which
28    the motor vehicle is to be registered and operated. Such bond shall  be  on  a
29    form approved by the director of insurance with a surety company authorized to
30    do business in the state.
31        (4)  In addition to any motor vehicle insurance required by the provisions
32    of  this  chapter,  any  motor  carrier  operating under authority of a permit
33    issued by the public utilities commission  shall  comply  with  the  insurance
34    requirements of section 61-804, Idaho Code.
35        (5)  It  is  an  infraction  punishable  by a fine of seventy-five dollars
36    ($75.00) for any person to violate the provisions of this  section    for
37    the first time.  A second and any subsequent conviction for a violation of the
38    provisions of this section within a period of five (5) years shall be a misde-
39    meanor,  punishable  by a fine not exceeding one thousand dollars ($1,000), or
40    by imprisonment in the county jail not exceeding six (6) months, or both.  The
41    department shall notify any person convicted of a violation of this section of
42    the penalties which may be imposed for a second and any subsequent  conviction
43    .

44        SECTION  4.  That  Section 49-1232, Idaho Code, be, and the same is hereby
45    amended to read as follows:

46        49-1232.  CERTIFICATE OR PROOF OF LIABILITY INSURANCE  TO  BE  CARRIED  IN
47    MOTOR  VEHICLE.  (1) A certificate or proof of liability insurance shall be in
48    the possession of the operator of every motor  vehicle  or  present  in  every
49    motor vehicle at all times when the vehicle is operated within this state. The
50    certificate  or  proof of liability insurance shall be provided for inspection
51    to any peace officer upon request to the operator of  any  motor  vehicle.  No


                                          4

 1    person shall be convicted of violating this section if that person produces at
 2    any  time  prior to conviction the certificate or proof of liability insurance
 3    covering the motor vehicle that person is accused of operating in violation of
 4    this section, where the certificate or proof  of  liability  insurance  demon-
 5    strates  the  existence  of  liability insurance described in section 49-1212,
 6    Idaho Code, which was in effect at the time of occurrence of the violation.
 7        (2)  It is an infraction punishable by  a  fine  of  seventy-five  dollars
 8    ($75.00)  for  any  person to violate the provisions of this section  for
 9    the first time. A second and any subsequent conviction for a violation of  the
10    provisions  of this section within five (5) years shall be a misdemeanor, pun-
11    ishable by a fine not  exceeding one thousand dollars ($1,000), or by  impris-
12    onment  in  the county jail not exceeding six (6) months, or both. The depart-
13    ment shall notify any person convicted of a violation of this section  of  the
14    penalties  which  may  be  imposed  for a second and any subsequent conviction
15    .

16        SECTION 5.  That Section 49-1428, Idaho Code, be, and the same  is  hereby
17    amended to read as follows:

18        49-1428.  FINANCIAL  RESPONSIBILITY. (1) It shall be unlawful for any per-
19    son to operate a motor vehicle upon highways without a valid policy of liabil-
20    ity insurance in full force and effect in an amount not less  than  that  pro-
21    vided  in  section  49-117, Idaho Code, or unless the person has been issued a
22    certificate of self - insurance pursuant to section 49-1224,  Idaho
23    Code,  or  has previously posted an indemnity bond with the director of insur-
24    ance as provided in section 49-1229, Idaho Code.
25        (2)  It is an infraction punishable by  a  fine  of  seventy-five  dollars
26    ($75.00)  for  any  person to violate the provisions of this section  for
27    the first time.  A second and any subsequent conviction of a violation of  the
28    provisions  of this section within five (5) years shall be a misdemeanor, pun-
29    ishable by a fine not  exceeding one thousand dollars ($1,000), or by  impris-
30    onment  in the county jail not exceeding six (6) months, or both.  The depart-
31    ment shall notify any person convicted of a violation of this section  of  the
32    penalties  which  may  be  imposed  for a second and any subsequent conviction
33    .

34        SECTION 6.  This act shall be in full force and effect on and after  Janu-
35    ary 1, 1999.

Statement of Purpose / Fiscal Impact


    





                            STATEMENT OF PURPOSE
    
                                  RS 07987
    
    The proposed changes to Section 49-1208, 49-1220, 49-1229, 
    491232 and 49-1428 will restructure the penalties associated 
    with operating a motor vehicle without the mandatory liability 
    insurance or proof of financial responsibility. A first offense 
    will continue to be an infraction with a seventy-five ($75) 
    fine. A second or subsequent conviction within a 5-year time 
    period will be increased to the level of a misdemeanor.
    
    This proposed legislation also modifies the program requiring 
    insurance companies to provide proof of financial 
    responsibility to the Department of Transportation for a one 
    (1) year period for a first-time offense; and a three (3) year 
    period for a subsequent offense within a 5-year time frame.
    
    The effective date of this legislation is January 1, 1999. This 
    effective date was requested by the Department of 
    Transportation, and will allow necessary time to modify the 
    infrastructure to manage this effort.
    
                               FISCAL IMPACT
    
    An estimated $17,100 one-time fee will be required by the 
    Idaho Transportation Department's automated computer system.
    
    An unpredictable cost associated with additional court time 
    can be anticipated for second or multiple offenses, however, 
    such costs will be recovered by court fines imposed.
    
    CONTACT
    
    Name: Senator Robert L. Geddes - Phone 332-1406
             Senator Sheila Sorensen - Phone 332-1332
    
    S1483